February 6, 2014

TOM MAGUIRE ON THE CBO REPORT: That Is A Lot Of ObamaCare Losers.

So, a plot twist I have not seen discussed elsewhere: per CBO, the work cutback will represent about 1.5% to 2% of hours worked but only 1% of wage compensation, since the cutback will occur among the lower-earning folks eligible for subsidies (see p. 133 of the .pdf).

However, per this Economic Policy Institute chart based on the authors’ “analysis of Kopczuk, Saez, and Song (2010) and Social Security Administration wage statistics”, we glean that the bottom two quintiles only take about 11% of wage income. So if CBO-projected 1% reduction in wage income falls entirely upon those two quintiles, it is an income reduction of roughly 9% for that group.

But they’ll have a lot of leisure time, in their cardboard box under a bridge.